The always insightful Richard Bernstein swims against the tide when he says that he doesn’t understand why US investors still like Gold… in his latest Forbes interview he said the following:
“… we’re not big fans of gold. People have been very worried about inflation, but I think that’s more an issue if you’re a non-dollar investor right now. The dollar has been more stable over the past several years than people actually realize. Currencies that have not been stable – obviously you’d have to talk about the Euro to some extent – I could understand if you’re a Euro-based investor you might be interested in gold. Certainly if you’re in some of the emerging markets, where their currencies have been all over the place, yeah, maybe you want gold there.
But for US dollar-based investors, I’m not sure I understand the enthusiasm. Inflation-based expectations are not going up in the United States. The dollar has been stable to slightly appreciating. I think gold was the correct thing to hold from 2000 to 2008/2009, but I really don’t think it’s a fundamentally-based story anymore.”